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Midway Gold Corp. reports that exploration drilling
conducted in the fourth quarter of 2010 has resulted in an extension of the mineralized
strike length by about 1.8 km to the south-southwest of the previously known
gold resource at Spring Valley. The step out in reverse circulation drill
hole SV10-499 intersected 12.2 m of 1.2 gram per tonne (g/t) Au including 1.5
m of 7.8 g/t Au mineralization, showing strong, relatively shallow Spring
Valley-type mineralization in similar structures and host rocks tothe
existing gold resource.The drill hole is south of the property acquired late
last year and described in the press release dated December 8, 2010 (see
illustration below). The gold resource remains open to the northwest, to the
south, and to depth.
Highlights of fourth quarter drill results reported to the Company by Barrick
Gold Exploration Inc. ("Barrick") includes several high grade
intercepts (further described in the table below):
* Hole SV-511C with 62.5 m of 2.2 g/t Au including 1.5 m of 22.4 g/t Au, 1.5
m of 305.0 g/t Au, and 1.5 m of 21.1 g/t Au; and 42.7 m of 0.9 g/t Au
including 1.5 m of 12.5 g/t Au.
* Hole SV-502C with 3.3 m of 3.0 g/t Au including 0.8 m of 17.8 g/t Au, and
10.5 m of 1.6 g/t Au including 1.0 m of 28.0 g/t Au.
* Hole SV-510 with 25.9 m of 0.8 g/t Au including 1.5 m of 4.6 g/t Au, and
12.2 m of 3.6 g/t Au including 1.5 m of 96.0 g/t Au.
These holes intersected mineralization below the rim of the north edge of the
conceptual pit and to depth and could therefore expand the length and width
of the resource as well as at depth.
"Midway believes that these results are strong evidence that the new,
untested parcels acquired last year could potentially contain significant
resources at relatively shallow depths," said Ken Brunk, President
and COO. "It will be exciting to watch the development of this
potentially world-class gold system."
Barrick has informed Midway that it intends to conduct and fund the minimum
required program of US$7 million in 2011 for a cumulative amount of US$16
million by December 31, 2011. Drilling in 2011 is expected to focus on
expanding the resource and evaluating satellite targets, particularly within
the recently acquired land south of the existing resource. Under the terms of
the March 9th, 2009 agreement between Midway and Barrick, Barrick will earn a
60% interest in the project by completing work expenditures of US$30 million
before December 31, 2013.
Midway has commissioned an independently prepared NI 43-101 compliant
resource update to estimate how much the resource may have expanded due to
Barrick's drill programs since 2009. As of March, 2009, the Inferred Resource
was 1.8 million ounces of gold contained within 80 million tonnes grading
0.72 g/t gold. See the Midway press release dated March 2, 2009 and the
subsequent NI 43-101 technical report filed on SEDAR March 30, 2009 for more
details. The open pit outline shown below is based upon a $715 gold price pit
from the 1.8 million ounce Inferred Resource.
Please click on the following link to view the Long Section of the Spring
Valley Project, in Nevada (looking northwest):
http://www.usetdas.com/images/MidwayPicfeb23.pdf
Significant Recent Fire Assay Drill Intercepts, Spring Valley Project,
Nevada
(as reported to Midway by Barrick)
Hole ID
|
From (m)
|
To (m)
|
Interval (m)
|
Gold (g/t)
|
SV10-497C
|
|
108.2
|
112.8
|
4.6
|
1.1
|
|
129.5
|
132.6
|
3.0
|
1.3
|
|
395.8
|
398.8
|
3.0
|
2.1
|
|
SV10-498
|
|
152.4
|
157.0
|
4.6
|
0.6
|
|
169.2
|
173.7
|
4.6
|
0.7
|
|
SV10-499
|
|
33.5
|
36.6
|
3.0
|
0.6
|
|
102.1
|
106.7
|
4.6
|
0.5
|
|
118.9
|
125.0
|
6.1
|
0.6
|
|
149.4
|
161.5
|
12.2
|
1.2
|
including
|
149.4
|
150.9
|
1.5
|
7.8
|
|
234.7
|
242.3
|
7.6
|
0.4
|
|
248.4
|
257.6
|
9.1
|
0.9
|
|
297.2
|
301.8
|
4.6
|
0.7
|
|
SV10-500C
|
|
321.9
|
328.0
|
6.1
|
0.9
|
|
SV10-501C
|
|
326.1
|
332.1
|
6.0
|
0.4
|
|
SV10-502C
|
|
182.9
|
187.8
|
4.9
|
1.8
|
|
396.6
|
408.1
|
11.4
|
1.1
|
|
412.8
|
416.1
|
3.3
|
3.0
|
including
|
414.0
|
414.8
|
0.8
|
17.8
|
|
444.7
|
461.8
|
17.1
|
1.4
|
including
|
452.9
|
454.8
|
1.8
|
6.0
|
|
520.3
|
530.7
|
10.3
|
1.4
|
including
|
523.5
|
525.0
|
1.5
|
6.7
|
|
539.0
|
549.6
|
10.5
|
1.6
|
including
|
542.5
|
543.5
|
1.0
|
28.0
|
|
613.0
|
621.6
|
8.6
|
0.8
|
|
630.8
|
642.6
|
11.9
|
1.3
|
including
|
635.7
|
637.2
|
1.5
|
5.4
|
|
649.7
|
665.7
|
16.1
|
0.6
|
|
692.2
|
697.0
|
4.8
|
0.7
|
|
SV10-505C
|
|
358.7
|
366.7
|
7.9
|
1.2
|
|
367.3
|
378.6
|
11.3
|
0.7
|
|
393.5
|
396.8
|
3.3
|
0.6
|
|
393.5
|
396.8
|
3.3
|
0.9
|
|
SV10-506C
|
|
389.9
|
393.4
|
3.5
|
0.6
|
|
416.1
|
437.7
|
21.6
|
0.7
|
|
SV10-507C
|
|
73.2
|
86.9
|
13.7
|
1.4
|
including
|
77.7
|
79.2
|
1.5
|
6.3
|
|
SV10-508
|
|
210.3
|
214.9
|
4.6
|
8.4
|
|
SV10-510
|
|
120.4
|
126.5
|
6.1
|
0.5
|
|
161.5
|
164.6
|
3.0
|
1.2
|
|
233.2
|
236.2
|
3.0
|
1.3
|
|
256.0
|
265.2
|
9.1
|
1.3
|
|
272.8
|
275.8
|
3.0
|
6.6
|
|
291.1
|
301.8
|
10.7
|
0.5
|
|
310.9
|
336.8
|
25.9
|
2.7
|
|
344.4
|
358.1
|
13.7
|
0.6
|
|
368.8
|
394.7
|
25.9
|
0.8
|
including
|
378.0
|
379.5
|
1.5
|
4.6
|
|
405.4
|
417.6
|
12.2
|
3.6
|
including
|
411.5
|
413.0
|
1.5
|
96.0
|
|
SV10-511C
|
|
269.7
|
332.2
|
62.5
|
2.2
|
including
|
275.8
|
277.4
|
1.5
|
22.4
|
including
|
300.2
|
301.8
|
1.5
|
305.0
|
including
|
304.8
|
306.3
|
1.5
|
21.1
|
|
338.3
|
341.4
|
3.0
|
2.0
|
|
350.5
|
358.1
|
7.6
|
0.6
|
|
370.3
|
384.0
|
13.7
|
0.6
|
|
390.1
|
403.9
|
13.7
|
0.4
|
|
410.0
|
452.6
|
42.7
|
0.9
|
including
|
417.6
|
419.1
|
1.5
|
12.5
|
Assays received in the fourth quarter for seven additional holes produced
no significant intercepts.Reverse circulation drilling was conducted by Hard
Rock Drilling of Elko, Nevada. Core drilling was conducted by TonaTec
Exploration of Mapleton, Utah. Drill hole numbers ending with a "C"
indicate core holes.Samples were assayed by ALS-Chemex Labs, in Sparks,
Nevada using 30 gram fire assay methods (FA). Results reported represent
thickness along the trace of the drill hole and do not necessarily represent
true thickness. Intervals may not match to the nearest tenth due to
arithmetic rounding.
Data reported to Midway by Barrick and disclosed in this press release have
been reviewed for Midway by Richard D. Moritz, (B.Sc., MBA), a
"Qualified Person" as that term is defined in National Instrument
43-101.
ON BEHALF OF THE BOARD
"Ken Brunk"
Ken Brunk, Director, President and COO
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to explore,
design, build and operate mines in a manner accountable to all stakeholders
while producing an acceptable return to its shareholders. For more
information about Midway, please visit our website at www.midwaygold.com or
contact R.J. Smith, Manager of Corporate Administration, at (877) 475-3642
(toll-free).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements about the Company and
its business. Forward looking statements are statements that are not
historical facts and include resource estimates. The forward-looking
statements in this press release are subject to various risks, uncertainties
and other factors that could cause the Company's actual results or
achievements to differ materially from those expressed in or implied by
forward looking statements. These risks, uncertainties and other factors
include, without limitation risks related to fluctuations in gold prices;
uncertainties related to raising sufficient financing to fund the planned
work in a timely manner and on acceptable terms; changes in planned work
resulting from weather, logistical, technical or other factors; the possibility
that results of work will not fulfill expectations and realize the perceived
potential of the Company's properties; uncertainties involved in the
interpretation of drilling results and other tests and the estimation of gold
resources; the possibility that required permits may not be obtained on a
timely manner or at all; the possibility that capital and operating costs may
be higher than currently estimated and may preclude commercial development or
render operations uneconomic; the possibility that the estimated recovery
rates may not be achieved; risk of accidents, equipment breakdowns and labor
disputes or other unanticipated difficulties or interruptions; the
possibility of cost overruns or unanticipated expenses in the work program;
and other factors identified in the Company's SEC filings and its filings
with Canadian securities regulatory authorities. Forward-looking statements
are based on the beliefs, opinions and expectations of the Company's
management at the time they are made, and other than as required by
applicable securities laws, the Company does not assume any obligation to
update its forward-looking statements if those beliefs, opinions or
expectations, or other circumstances, should change.
This press release uses the terms "Measured resources",
"Indicated resources" and "Inferred resources", which are
calculated in accordance with the Canadian National Instrument 43-101 and the
Canadian Institute of Mining and Metallurgy Classification system. Mineral
Resources are not Mineral Reserves and do not have demonstrated economic
viability. We advise investors that while those terms are recognized and
required by Canadian regulations, the U.S. Securities and Exchange Commission
does not recognize them. U.S. investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be converted
into reserves. In addition, "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or any
part of an Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral Resources may
not form the basis of feasibility or pre-feasibility studies, except in rare
cases. U.S. investors are cautioned not to assume that part or all of an
inferred resource exists, or is economically or legally minable.
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